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tv   Taking Stock With Pimm Fox  Bloomberg  March 4, 2014 5:00pm-6:01pm EST

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>> this is "taking stock" from march 4, 2014. today the themis family. epix is joining time warner cable and in just a moment i will talk to the chief executive about the agreement and take a look at the state of the cable industry. i look at family conversations happening around the dinner table. i will speak with two executives who turned a $60,000 investment into a $125 million furniture brand. you are going to meet a family,
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new york's first family of fine dining. all that and more the first look at the headlines from carol massar. smith & wesson out whether turning after the closing bell. they beat estimates and its forecast for the year. the stock is up higher. microsoft's former ceo steve ballmer says he is sorry he did not combine hardware and software development sooner after the company missed out on apple smartphone success. he spoke at oxford university. radioshack shares hit a four-month low following fourth-quarter sales that trailed analysts estimates. the electriconics retailer plans the show is -- shutdown 20% of its stores. >> vladimir putin says he sees no reason to send russians further into ukraine but he is also keeping the use of force on
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the table in a showdown with western nations. president obama said it is him who must step back from the brink. peter cook at the very latest. it sound like people are trying to turn down the heat a little bit. >> trying to at least at the margins. an effort by vladimir putin to turn down the bid. tensions are still clearly running high and a resolution to this crisis appears a long way out. putin started the day by holding that unusual news conference where he defended russia's move to bolster his military installations in the province of crimea. he says there is no need for russian forces at this point to go further into the ukraine but he added that russia would be justified if they did do so 20 specifically to the ousted ukrainian president. as putin was speaking, john kerry was arriving in kiev and pledging support for the new
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ukrainian government, including a promise of $1 billion of u.s. loan guarantees for that new government. he carried a warning for vladimir putin. >> if russia does not choose to be escalate, if it is not willing to work directly with the government as i hope they will then our partners will have absolutely no choice but to join us to continue to expand upon steps we have taken in recent days in order to isolate russia politically, it will magically, and depomed -- and economically. >> president obama offered a very similar message urging putin to deescalate this crisi. s. they started drafting a formal aid package for the ukraine with addition to the law guarantees are expected to include expanded sanction authorities for the president in this showdown with vladimir putin over ukraine. collects there is less bipartisan support for the
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president budget plan? there may be a an agreement over ukraine but not over what he sent to congress. >> that is right. the other big story of the day is the president submitting this six budget of his presidency. and budget request that is his blueprint for spending including new initiatives for early childhood education, job training programs, expanding tax credits, and tax cuts as well. also, new funding for infrastructure. thethese ideas says -- president says is important for getting the economy to move in the right direction. >> it is a roadmap for creating jobs with good wages. at a time where deficit has been cut in half, it allows us to meet our obligations to future generations without leaving them a mountain of debt. >> republicans including john boehner called his budget the most irresponsible yet. they believe this is a campaign
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move that includes a whole host of issues that democrats like to campaign on on this midterm election year. this budget and the eyes of republicans and some democrats -- they are going to make some big changes. with the president has put the paper will change pretty quickly. >> thank you very much, peter cook. let's move on to media. the big story today was the entertainment network epix is joining the time warner cable family. it will be launched nationally on march 18. joining us to talk about this deal is the president and chief executive of epix, mark greenberg. also with us is jon erlichman. start usonder if you off by explaining what exactly this agreement means. has over 12er cable a half-million homes that they have access to. epix is a premium service
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similar to hbo or showtime or we have uncut, unedited movies. blockbuster hits like sky fall, hunger games, tyler perry, the avengers. we have had a great series of trance -- franchises from line gay pictures. it allows us to put our movies on available to 12.5 million more homes which really significantly increases our reach in the traditional world. come in on this. >> you have contest in the process of trying to buy time warner cable so what could that mean? with this deal change? >> i think we all know there has been a lot of discussions that have been going on about time warner cable over the last several months starting back at the company conference last summer. i think as we work in really good faith with the time warner cable management team, we
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created a deal for both sides that will live well beyond any transaction that goes on. we are excited that we are going to help time warner cable generate incremental revenue and we think this becomes a great place for us to be with them. we hope that the comcast management team will see it as a way time warner cable will make incremental margins. it will continue well beyond any transaction that goes on. we are excited about that. the management team has been really enormously supportive of this launch because they see this as a great way of delivering hollywood titles to their consumers. oflet's talk about the kinds content we will be seeing on your network going forward. there are paramount films that we will see. there is a growing talk about the idea of epix moving into original programming. if we were going to think about your company moving forward like
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netflix. how she will be thinking about the evolution of epix? >> every network is looking for that hit series. we start with a great proposition of having assets to him so many great franchise movies. criticaleen doing .cclaimed documentaries we have been doing that along with high-profile concerts and comedy. the holy grail of every network is having a hit series. we are fortunate. we have lions gate, maybe one of the hottest tv groups out there today. paramount has limited its tv group as well as mgm in terms of the last few years and have delivered high profile high energy series. we are going to be working with our equity owners and we believe
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that we have the opportunity in the very near future to create what we think our high-profile signature programs. >> i know you are a veteran and industry. give us a little window into your past experience and i want to get some thoughts about your competitors particular google and youtube. >> i started my career in hbo in 1981 and i spent eight years there. in 1989, i left for showtime where i went into the marketing department, later running back group. -- that group. eventually being responsible for executive vice president for sports programming. also responsible later in my career for corporate strategy. >> you know what is going on in the business. what do you think about google and its youtube work? >> i think youtube is a great proposition. >> doesn't make money? -- does it make money?
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>> did cable make money in the first five years? i think they are trying to find what their way is going to be. the world of cable started out cableroadcasters moved to casters and is youtube is becoming micro rod casters -- broadcasters. is that an audience that you could be successful with? i think the jury is still out. they have invested a lot of money on their channels. user generated content has been on youtube since its inception. enoughple -- is there there to find something that is going to be entertaining? ; we know there are some franchises that do enormously well on youtube. we all take note of that. >> really quickly, netflix started out as a place where content from players like you could go. now we are seeing netflix, to cable indirectly. is a partner or is it a
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competitor? >> i think the whole world has become frenemies these days. you can make that argument about every media company out there. are they competitors? are they there as friends? i think we have to find that existence of how we are able to build each other's business models. netflix has been an important customer of ours. are content does extremely well. we have had some record months. we are pleased. their advent of original they have done a handful of series and that is certainly for them been a good strategy. nothing like under games. -- hunger games. >> thank you for joining us, mark greenberg. congratulations on your deal with time warner. sxsw.
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soutwestby begins friday in austin, texas. i will talk to the chief officer of t3. we will find out what all the excitement is about next. ♪
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>> the animal sxsw festival begins friday in austin, texas and is expected to draw about 30 to 35,000 participants. the 20-year-old music, film and interactive music festival has seen the popularity rise. gayning me now is bengatas. he is the chief innovation officer of the ad agency t3. thank you for being here. do you remember the first time that you went to the sxsw conference? >> it was kind of small and we
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were really quite sure what it was about. it started off as a music venue and that was where everyone went to see where the new bands might be. it evolved into film and them before we knew it, there was this whole thing around the internet and the tech crowd started showing up. >> you have 30,000 to 35,000 expected tto attend. what kinds of things are you doing expecting to learn when you go to that event? >> is always been a learning environment that i think the egg is part about it is meeting the people. 35,000 people who are early adopters. they are entrepreneurs and converge in this little funny place that is called austin, texas. it has become the place to meet people. one of the companies you will be looking for is atlas.
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this is about wearable technology? >> it is a big part of what is going on now. it is the buzz everywhere. atals is a great company because it really fits into the health category where we are trying to measure all of these things going on in our bodies and become more fit. all this take information about your exercise program and then you create graphs and you can track your progress, right? you can measured against your friends? >> really get into better shape. it is amazing how this company has such an amazing run and raised half $1 million already. me.3 and this is a different kind of investigation and health. tell us about it. >> they do dna testing. you mail it in and they could
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tell you a lot of things about your dna. you can learn where you came from, what diseases you may or may not have. i am most interested in their ceo giving a talk. they had a lot of regulatory issues. we are looking for to seeing what they have to say about that. >> i noted that last year uber, which is the application for taxi rides. presence inry big sxsw last year. one company i want you to tell us about his radioshack. it doesn't sound like a sxsw story but i note you have been doing a lot of work for major corporations whether it is electronics companies, what you think about the future of radioshack? >> they missed the mark -- today consumers want to buy things immediately. they want to do it online. they like to look at the
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reviews. one word that is but the roadblock out is amazon. everyone is able to overnight what they want. >> you go online and you check it out. you think there is a future for radioshack? >> it is going to be tough. the biggest challenges who is the consumer? used to be these hobbyist technologists. a lot of these are moving to amazon and i think radioshack is a real challenge ahead of them finding out who the next consumer is going to be. >> i haven't heard the word hobby in such a long time. thank you for joining us. i look forward to hearing from you at the sxsw festival which begins this friday in austin. bowling in, and brooklyn. we are going to be talking to the cofounder of brooklyn bowl which is when the hottest clubs in new york which is expanding overseas and out west. the details ahead.
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>> what you get when you cross bowling with music? in one case you get brooklyn bowl. the club is on a roll. they say they have the best music club in new york for several years in a row and it features live performances every night. you can brush up on your strikes and spares. joining me now is charlie ryan, the cofounder of brooklyn bowl. i am so excited to talk to you because i have never thought that someone would be saying brooklyn and bowling is going international. tell us the story. >> we really were the first bowling alley in 55 years in brooklyn. we had great success with this
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swirl of different elements. it isn't just one thing. we like to think that what we do with more than the sum of the parts. >> what was the neighborhood around brooklyn bowl like when you started it? was at this upscale real estate? >> not oat all. there were programs for people to go in there. the new york times set our quarter was the headquarters of the universe or something like that. >> headquarters of the bowling universities right now. teletype combined music with it? >> part of it is the layout which has worked out really well. the lanes are contiguous with the stage. it is not like the performances are in another room are segregated. it is a part of it and being up in the lanes is like being in a vip situation. >> what kind of volume are you doing in terms of people?
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how do you measure whether the lace is popular not? depending onry who the high bind attraction is. headline attraction is. we average about 1000 people. we are open every night of the week so no one has to say, i wonder if they are open. >> was that a key moment? sometimes the details are important and you don't see it. was that a key moment to understand that you needed to have everyday open? >> it has worked out well but one thing we did adjust was initially we felt that we probably have music programming about three or four times a week. we realized we are either going to go big or go home. we have to establish ourselves as a music club or we are probably not doing ourselves justice. performances5
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a month which sounds impossible and i think that is the greatest number of ticket performances everywhere for a place our size. , are theyerformances going to be regulated in some the new format that you have because you have an operation at london and onn status? -- las vegas? >> we are not only replicating some of that, we are bringing in some of the same acts so we literally bringing in the same flavor. we open up with legends this week and really built her career. --their career. we have benefited from each other. the following week and after that, we have elvis costello with the roots. i think the only time they perform a record they made together was for us back in
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september. that is our grand opening weekend even though we are not calling that. >> you bowl as well? >> not very well. >> charlie ryan, cofounder of brooklyn bowl. this is taking stock on bloomberg. ♪
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>> this is taking stock on bloomberg. i want to go to i'm radio cohost carol massar. >> the chart is agreed to pay more than $77 million to merrill lynch to and interest ra tes which cost taxpayers. -- filing is a settlement the settlement is a 60% reduction. congress obama sent of $3.9 trillion budget which
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ned to help the economy. about $29 million. perhaps for the national football league. the nfl is in per limoneira talks-- and preliminary to move the extra point kick to 42 yards. i certainly can't. >> thanks. ago, mitchell gold and bob williams started a furniture company with an investment of just $60,000. today the brand that bears their names has grown to a $125 million a year business. stores across the country. joining me now is mitchell gold
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and bob williams. up just bytart trying to understand how is it that 25 years ago you take $60,000 and you decide you want to start a furniture company. who does that? >> there is something to be said about naivety. we were together as a couple. we only had about $60,000. i was fired from a job at a big furniture company. bob was working for an ad agency but we really like the idea of working together and i was very familiar with the furniture business. i saw and bob a really great design talent and thought it would be great to start a company making chairs and tables. >> was a simple as that? >> we thought about maybe starting a vineyard or christmas tree farm. wont out?rniture on out? >> it was a very fortunate
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fluke. >> how to go from being $60,000 to $125 million. there must've been major milestones in terms of accounts and the companies you work with in order to create this brand. >> it did take 25 years which was a long time. we started off with dining room chairs and dining room tables and then slowly expanded the brand. we included upholstered chairs. we did upholstered sofas, sleepers. about 10 years ago we started adding lighting and accessories. we started opening up our own store so that we could show the public our own vision of what we wanted to do. --was the response that the was there a specific challenge of opening stores? >> some of our customers do not like it in some of them stop
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doing business with us. we really felt strongly that we had a vision the way that we wanted it to be. billiard --d the how we wanted it delivered. this gives us total control over the brand and one of the unique things we have is that we have our own manufacturing facility in north carolina. upholstered furniture in america. >> making furniture in america. i thought that was in the history books but apparently not. >> up wall street -- upholstery. there is still that made in america and we are very fortunate to have a very successful company in north carolina. >> you describe also as the -- as north carolina as the buckle in the bible belt. >> it is a true southern state. >> can you describe how your company has changed the image of
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what a successful company can be in a place like that in terms of the benefits you offer, your employees, and the profile you have. >> when we started the company, one of the things that we really look towards was what companies like ben & jerry's were doing with their employees and the benefits they were offering. standard that we really wanted to achieve at some point. we have been able to accomplish a lot of different things. we have a day care at the factory. we have 77 kids all the way from six weeks to kindergarten. we have a scholarship program for kids who graduate from high school. we also have a cafeteria as well as help facilities. we have on-site nurses so in case some of you get sick, they can just run over to the health
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care and get taken care of and not have to spend half a day at the doctor's office. those benefits are not traditionally offered in manufacturing companies. one of the things that you have also done is the furniture in your products have appeared in a variety of movies and television shows. for example, the good wife. >> we have a big presence on the set. in today's world, facebook and twitter and everything, people are asking the set designer where they can buy the chairs and sofas. cbs approached us to do a licensing agreement and we have had an incredibly successful arrangement with them that we just renewed. >> can you go in and buy the whole set if you wanted to? could you go into one of your stores and say i want the good wife set? >> you can ask for the good wife collection. a lot of the pieces that are on
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the floor are on the set. what are some of the best selling items that you have? what stands out currently right now? >> we have a very modern, clean look. of the hunter sofa is our big seller. we just introduced a lot of tibetan wool and sheepskin furniture. it is a really great modern look. >> people can go online and they can see the price of these things. how do you compete with the price of furniture that comes in from overseas? >> one of the things that we did early on was one of very efficient factory. we don't have to marker things up high so 2-wood accounts for returns. that is why it has been hard for people to knock us off because we are so tightly run. when you offer the kind of benefits we have, it also means that our employees stay with us. we have very high productivity.
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i think we've proven that you could put corporate greed as a back seat and put your employees outburst and that is how you get really great productivity and value prices. >> you can be comfortable doing it because the upgrade furniture. for comingery much to us with a look into the world of design and furniture making in the united states. planning and estate is the ultimate family affair. jpmorgan is here next with five keys you need to leave things in proper order when that unfortunate day comes. this is taking stock on bloomberg. ♪
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>> this is taking stock on bloomberg. you work hard every day, you build a little foundation financially for your family so how do you ensure that they are going to be taking care of when that day comes where you're going to sell off that mortal coil meaning you die?
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a senior wealth advisor for jpmorgan is here with five tolls to consider when you plan your estate. is today's topic -- it is today's topic called the playbook for your pocketbook. great to see you. it is one of those events where you don't necessarily want to look forward to. your demise or anybody else's demise but you were just saying that planning for your estate is also about planning for your investments currently. can you explain how those two things come together? >> estate planning is the ultimate wealth management exercise. at the j.p. morgan morgan private bank, we quantified the benefits of estate planning. a family that just uses four basic strategies can increase the wealth they give to their 22% ores i-22% -- by
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setting your investment by the portfolio would have to outperform the benchmark for 25 years just to keep up with the families that get the basic estate planning. >> you can increase the amount of money that is available for you and your family if you follow some guidelines? you don't have to worry about whether the market goes up or down. this is do the paperwork, spend the time, you will be rewarded later on. you have to organize and understand what your assets are. >> know when your assets and how they will be taxed is really important. people have financial assets, they have mutual funds, they have a home. there are certain assets that are surprises and i would like people to be aware of to assets that are taxed in a way they don't expect. one is life insurance. when you run a life insurance policy you have the beneficiary. the beneficiary receives that money and never one tells me,
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that is outside my state. is actually not. theou out -- if you own policy and paid the premiums on it, the full amount is subject to estate tax. if the policy is owned by life insurance trust, the policy proceeds will not be subject to estate tax. on very simple fix but many people don't do it. >> having this trust is like having a third party robotic independent person that owns it. but youto control it don't necessarily have the beneficiary amount included in your estate. >> that is right. the second has set our retirement accounts. iras, 401(k)s. they are also subject to income tax. what that really means the has beenis that ira growing and has been serving the
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family so well for years will be eroded by 70%. convertingnk about to a wealth ira which means paying the income tax on it toay and it will be subject estate tax but they will not be subject to income tax. you can think about stretching out the payments of that ira after you were gone for the benefit of your children or even grandchildren. that gives a lot more economic value. lives on almost in the form of an ira at the beneficiary of that account, and you have to noted, the beneficiary would receive me be the income and not be subject to the same kind of lump-sum tax. collects you stretch it out over time -- >> you stretch it out over time. >> many of the driving forces is the tax law. part of mentioned as
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the exercise, you have to get organized and get your paperwork in order so that it is not a scramble at the last minute. >> getting organized is critical. that we understand what your goals are and that requires a good deal of thinking. you work with a lawyer specializing in this area. you become very organized about where your assets are, documenting where they are. you put documents in place. wills, trusts, and powers of attorney. they are very important. living wills so that if you're not able to do what the health care provider, your wishes will be followed and you will point the right person to make those decisions. this is part of the planning process. >> what about reducing the actual value of the estate because the federal inheritance laws and the taxpayer is above 5 million for the total estate.
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>> you are right. everybody has an exemption against the 40% estate tax of $5.34 million. married couples is $10.68 million. there are two states that have taxes. connecticut and minnesota. there are 20 states that have a state taxes. how do you lower your tax bill? >> that is one of the questions you have to ask. the last one is philanthropy because a lot of people like to leave something to some of the causes they support. >> a social legacy is very often just as important as a tangible legacy. identifying charities, knowing that you will put the right kind of assets to those charities. cash is always a great asset because you get a full charitable deduction. ablee don't realize to be way appreciated stock, you don't pay the capital gains tax on it. incorporating philanthropy into your plan is a great plate --
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way to convert the dollars that might be going to the government. you pay tax in the government -- and the government takes it away for you. >> thank you very much for joining us. joann johnson, thank you. looking into a topic of inheritance and what to do when that day arrives. coming up, i am going to get to a table at fresco. a family is here to celebrate feeding new yorkers for two decades. more next. ♪
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joining me now is new york city's first family of the restaurant industry. .osanna, elena they have been together for to get -- for two decades and they are here to celebrate this iconic milestone and talk about
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how their food has become a backstage staple of the berkeley center. great to have you all here. i want to start off with you. take us back. >> my sons were in california and having a great time so i wanted them back to new york. i said to my son anthony, comeback inuvo do anything you want to do. he said to open a restaurant and we did. 1993ened it in november and here we are 20 years later. still doing as well as we did from the beginning. we don't even realize we were there for 20 years. >> anthony, do you realize you have been working there for 20 years? >> working with three women, i certainly do. >> he had a full head of hair.
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all. treatment at what made you want to open a restaurant? collects i have been -- >> i was in the restaurant business. my brother and i had nightclubs and restaurants in california. i work for sure in hotels -- i worked for sheraton hotels so i've been around a bit. >> it didn't leave a bad taste in your mouth? >> it is in my blood. i had the privilege of having a chef at the house and showed me the ways in understanding things. >> what is it like to be part of this ensemble to have to produce this on a regular basis? in whate all very busy we do individually so mom and anthony are at the restaurant. i am catering. --anna hazzard tv job
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rosanna has her tv job. we all have her own role in respect each other's roles we try not to step on anyone's toes. >> doesn't mean keeping busy is the best way to keep everybody happy? ironedink everybody has out their own place in the business. i think everybody was doing the same thing we would get on everybody's nerves but everybody has something different. the restaurant has evolved. we have it on the go. we are doing backstage catering at berkeley center. elena is doing live concerts all over the city. there is always stuff going on. aboutanted to ask you the berkeley center. how did that happen? >> i have to tell you. i get married to the ceo of the center.
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it is because we have great food. >> that is probably your most severe critic. >> it was very awkward. mom said, no way. he would use bruce ratner. >> who was bruce ratner? >> he is the man. husband and alayna's were customers of the restaurant so it kind of all went together. it started with good food and it went to the heart. >> it doesn't matter your name is on the door -- does it matter that your name is on the door? >> it does matter. >> and there are many companies, technology companies, they create names rather than having the name of the people who actually own the business. >> we want our names there.
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we want people to know that we are waiting for them. i am the main scotto. i don't have any children, i just had eight grandchildren. i don't have children at home waiting for me. >> they are in the restaurant. >> we have them work in the restaurant and pay them very small wages. rosanna, just to tell people about your career little bit. how the restaurant scene has become theater. yorkcoanchor good day new and it goes perfectly with food because people in the tv business are always hungry. no matter what time of the day, we want food so this worked hand-in-hand. i think when the restaurant first opened to get a little press, i brought all my tv people in. a time but i want
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to thank the scottos family. thank you for taking stock. good night. ♪
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>> live from pier three in san francisco, oakland -- seven cisco, welcome to "bloomberg west." bitcoin is on the comeback trail. we will take a look at why. disney and dish sign a landmark bill that could be a game changer for the tv industry. the new agreement allows this to deliver disney content over the web to read up
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